The government of Colombia recently approved a law to regulate and license electronic deposit-taking entities. These financial institutions, designated Sociedades Especializadas en Depósitos y Pagos Electrónicos (Specialized Electronic Deposit and Payment Institutions), may be incorporated by individuals or legal entities, such as telecom operators or postal offices. With a minimum capital requirement of USD 3 million, these entities can allow users to save, make payments and receive money, primarily through correspondent agents [1] [2]. The initiative is meant to increase financial inclusion in the country by facilitating the creation of electronic deposit accounts that can earn interest and are exempted from banking transaction taxes (for transactions up to approximately COP 1.8 million, equivalent to USD 1,800) [3]. Implementation is expected to start approximately January 2016 [1].
Felipe Lega, the Deputy Director of Market Integrity at the Unidad de Proyección Normativa y Estudios de Regulación Financiera URF (Colombian Financial Regulation Agency) said: “Several mobile network operators, airtime sellers and even the post office have shown their interest to participate when the final regulations are in place. In total, we are talking about between five and ten potential new electronic deposit and payment institutions” [1].
By Julia Marin, Research Associate
Sources and Additional Resources:
[1] NextBillion, New Financial Inclusion Innovation in Colombia: Government approves electronic deposits through non-bank entities
[2] Center for Financial Inclusion, Pending Presidential Approval: Colombia’s Financial Inclusion Bill Set to Become Law
[3] Minihacienda, El ABC de las sociedades especializadas en depósitos y pagos electrónicos
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